Sacramento daily record-union., 1887-08-11
RAILROAD INVESTIGATION.
Further Testimony of Lloyd Tevis-Sena-
tor Stanford and J. III. SfroMhridce.

of the Pacific railways resumed its work this
morning; Lloyd Tevis, President OF Wells,
Fargo Il Co.'S Express Company, appeared with
copies Of the contracts and agreements prom
ised yesterday. They consisted of the contract
between the Central Pacific and Wells, Fargo d
Co., by which the former agrees to transfer the
merchandise of the latter over its lines, madein
1873, and the agreement between the Pacific
Express Company and Wells Fargo IL Co., in
1858, by which the former agreed % go out OF
business in consideration of getting onethird g
Wells. Fargo & Co.'S stock, which was increased
from $4,000 600 TO sl5,0ee,000.
During the construction of the Central Pacific,
about 1865, Mr.. Teyis said the railroad men en-
deavored TO get him into the Contract and Fl
nance Company, but he was afraid to have
anything to do with the enterprise, and de-
clined. AT that time Governor stanford and
his associates were borrowing money from
everybody who would lend They often applied
to the witness, who occasionally accommodated
them: He said he was apprehensiye that they
would fail TO carry through the enterprise and
become involved in irretrieyable ruin. AS the
law made the stockholders of any corporation
liable for its Indebtedness, he did not wish to
enter upon scheme which appeared to be so
hazardous, ana SO resisted all OF Governor Stan
ford's ESTABLISHMENTS. The witness said at that
time the railroad men were borrowing money at
per cent. per month, which was then the rul-
ing rate.
Shortly after its completion he said he had
been appointed Commissioner to inspect the
Central Pacific, and while doing So and consid-
ering the limited means of Stanford, Crocker
and their associates at the time of its construc
tion, he had often marveled at how in the
world they ever got over the mountains At the
time the road was completed the Contract and
Finance Company was Sc, 900 600 in debt, and be-
ing asked If he would have taken the stock of
the Central Pacific in possession of that COM
pany and assumed its debts, he said he would
not have done so. Owing To the personal LA
bility of its stockholders, capitalists generally
would have nothing TO do with the overland
road S securities and that was the reason its
sock was practically worthless. From the
nf al pQn n CT haa tla
Central Pacific, upon its completion, on the
verge of bankruptcy. This cloud was not re-
moved from the property until it began to pay
dividends.
Mr.. Cohen then presented to the Commission
copy of the agreement between the Central
Pacific Railroad Company and the Western
Union Telegraph Company, by which the latter
agrees TO transact the business of the railroad :
also the original assignments of D. W. Str ng of
San Diego. of fifty shares of Central Pacific
stock to O. d. Lambard, which the former de-
claied in his testimony had never been issued
to him. This assignment was dated December
It, 1868. Attached to it was certificate of Lam
bard transferring the stock to Stanford Mr..
Cohen also read from the minute-books of the
Central Pacific Company in 1868 two extracts
showing that Strong had received 5000 for
services rendered the company. These docu-
ments were all offered in evidence
j. II. strowbridge, who was Superintendent of
Construction of the Contract and Finance Com
pany was again called to the stand, and gave
some further data concerning the cost OF con-
Sacramento and Promontory This testimony
was eorroborative of that given yesterday with
some slight additions, for which he said he had
to rely principally upon his memory
In answer 10 the question what ii would have
cost to construct the Central Pacific five years
later, taking plenty of time, the witness said the
work could have been done for 20 per cent. less
than ii did cost. The great expense of the con-
struction was the speed with which the work
was prosecuted and the cost of material and
labor at that time. The winters of 1865 and 1866
were the worst ever seen in the Sierras. Snow
fell TO depth of 40 feet, and tunnels had TO be
bored through the snow to reach the face
of the tunnels in the rock. Water
had to be packed on wagons for forty
miles, and during the construction of
one part of the road hay, groceries and other
supplies had to be carried on mulch back long
distances. Snow avalanches carried away the
camps and men were lost and never
found. In several instances Cinnamon were
buried up by snow and their bodies were only
found IN the spring All this cost heavily: labor
was high IN consequence of the hardships the
men had TO endure. and in order to push the
work as was done the COMPANY had
to pour out gold like water. He thought the dif-
ference Ill the cost of constructing the
plenty of time allowed, would have been al least
20 per cent. This. of course includes the cost of
the track and equipment.
In answer to questions by Mr Anderson. Mr..
Strowbridge said he was now engaged in finishing
the California and Oregon Road. There are now
about fourteen miles of road to build the other
stde @ 9i me state line Cars are now running to
would be in operation by Christmas
Senator Stanford was again called to the
stand and Mr.. Cohen presented a bundle of
vouchers for expenditures made on behalf of the
Central Pacific Company called for BY Mr.. Pat
tison few days ago. From this bundle Patti
son took one dated December 81. 1873. for sI7i :
ls9 81, and asked the witness what the money
was used Tor, as the vou9her did not give the
expenditures in detail. Sepator Stanford said
ne had no recollection ofthis particular expend-
iture, but had general idea of what made il
up AT that time the officers of the conpany
were at Sacramento, and great deal of his
time was spent in San Francisco. Here he
transacted business for the corporation, drew
money rom the bank, borrowed money for the
corporation and paid its bills. AT the end of the
mouth an account of all these transactions were
sent 10 the Office and laid before the Board
winch approved them. Some money was paid 10
attorneys to look after the interests OF the com
pany about the Legislature, but these exnendi-
lures were always small and usually confined 10
explaining adverse legislation. The company
never asked for the passage of bills afier lS-S
but it opposed the enactment of many laws tbot
II passed would have proved ruinous to the cor
poration.
NM MT 70 PattlsonaWas any part of this money
senator StanfOrd-I have said / could not
recoilect the particular purpose for which this
money was paid out 1t does not seem TO me that
we 90 not charge up any expenditures for which
vouchers cannot be rendered. 1t was expended
| am sure in the interest of the company.
In answer TO Mr.. Anderson the witness said
he entered all the amounts paid ont hy him on
pehaii OF the company on his check-6oo but
ne dld not know where the stubs are row
Inc chairman produced q voucher for $50 GEO
and asked the witness what that amount had
been expended for
The reply was that he thought it very likely
that ne had asked for that sum of money to he
placed to his credit.
Was any of that sum of money used 10 il, f,.
ence legislation
9 have told you that do not know. think
L nave told you that three or four times
Pattison (pointing his index finger at the Wit
ness IN a menacing manner)-I want you Coy
ernor Stanford, TO distinctly understand that
am gong 10 ask you that question on every one
oil these vouchers. 1t is my sworn duty TO do So
Senator stanford-lt ought to be your sworn
duty TO ask your questions like gentleman,
which you have not done
Pattison-lfI have not done so, anolocfzp
senator Stanford-You have occasion TO apo,
ogize. ~ = p'--
Attorneys Bergin and Cohen here offered ex.
planatlons, and the examination of other
vouchers was proceeded with, and a formal de-
ciination TO answer was recorded in each in
stance. 49,
Mr.. Anderson asked general questions. and
among them was whether he had ever riyen
Henry Nroonan any money for influeRcine
legislation.
Witness-I never gave him any money forapv
such purpose.
pose to K. Franchot?'' lac PA'- :
4" have no knowledge of ever having paid
him any money" ~
Dld you ever pay any money to be used in
Congress to General Sheriff. az
Ineyer paid him any money"
several similar questions were asked some of
which witness declined to answer upon grounds
Mr.. Anderson then took up the matter of the
formation CT the Pacific Express Company. and
asked a., the witness who paid the Sl66. .666 66 TO
Wells, Fargo & Co.?
Witness replied that the transactions were
somewhat dim IN his mind, but he thought that
each one OF the Directors paid his individual
snare. This money was not paid by the Central
Pacific Railroad Company
Adjourned until tomorrow.
THE Importance of keeping the liver and
kidnays in good condition, CANINE. bo o.,.o